Question

A sum of Rs. 4000 is lent on simple interest at the rate of 10% per annum. Simple interest for 5 years is how much more than the simple interest for 3 years?

• A. Rs. 400
• B. Rs. 600
• C. Rs. 800
• D. Rs. 1200

Answer 1

Answer:

C. Rs. 800

Solution:

Given:

A sum of Rs.4000 is lent on simple interest at the rate of 10% per annum

P= 4000

R = 10%

Formula used:

S.I =$\frac{(P\times{N}\times{R})}{100}$

Calculation:

S.I for 5 years = $\frac{(4000\times{5}\times{10})}{100} = 2000$

S.I for 3 years = $\frac{(4000\times{3}\times{10})}{100} = 1200$

⇒ Difference between S.I for 5 years  and S.I for 3 years = 2000 - 1200 = 800

∴ Simple interest for 5 years is 800 more than the simple interest for 3 years.